Analyst: Sony, Microsoft Could Sell Next-Gen Consoles for $400

Based on meetings at CES.

How much do you think Microsoft and Sony will sell their next-generation consoles for? According to one eager analyst, it's likely that consumers won't have to pay more than $400.

CVG quotes Colin Sebastian of Baird Equity Research, who "partially" made the predictions based on some 'off-the-record meetings with "a number of companies."' There's no mention of what else factored into his comments though.

"Our checks suggest that next-generation console hardware will be largely built from 'off the shelf' high-end PC components, along with hybrid physical/digital distribution models, enhanced voice controls and motion sensing (Kinect integration with every Xbox), and broad multi-media capabilities," he said.

"The cost of production and retail price points should be lower than prior console launches," he added. Lower production costs, based on off-the-shelf parts, would allow for cheaper price points and thus allow Microsoft and Sony to come closer to breaking even on each console sale. In the past, console manufacturers have relied on selling hardware at a loss - but in today's market, that practice seems like a less attractive one.

Sebastian concluded that the use of such PC architecture would allow Microsoft in particular to tie up its next Xbox with Windows 8 and Windows Mobile.